The 4 Tiers of AI Risk
Pete Hannam
Data and AI Systems Architect
Learn how the EU breaks AI down into four tiers of risk and why.
Learn how the EU breaks AI down into four tiers of risk and why.
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The 4 Tiers of AI Risk
46 secs
Key learning objectives:
Outline the 4 tiers of AI risk
Overview:
Not all AI is created equal. A chatbot helping with customer service isn’t the same as an algorithm deciding someone’s loan approval. The EU AI Act recognises this. That’s why it sorts AI into risk tiers. Unacceptable risk is at the top of the risk pyramid. High-risk comes next, followed by limited risk and lastly, minimal risk.
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Summary
What are the 4 tiers of AI risk under the EU AI Act?
- Unacceptable risk: These AI systems are completely banned. The EU considers them fundamentally incompatible with European values and rights.
- High risk: These systems can operate but only after meeting significant requirements, such as extensive documentation, rigorous testing, and ongoing monitoring.
- Limited risk: These systems mainly require transparency. It's about preventing deception, not preventing operation.
- Minimal risk: This covers most AI applications and faces virtually no new requirements under the Act.
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Pete Hannam
Pete Hannam has over twenty years’ experience building large-scale data platforms, including those that now underpin modern AI systems. His work has ranged from national security infrastructure processing hundreds of billions of records to global enterprise platforms supporting tens of thousands of users. He has architected AI-ready systems for government, consultancies, and enterprises, with a strong focus on governance, security, and regulatory compliance. His work emphasises that successful AI deployment depends not only on technology, but on understanding the organisational, technical, and regulatory context that enables AI initiatives to deliver real value.
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